GLOBAL ALUMINIUM WRAP: Surging US Midwest premium pressures global markets

The squeeze in truck availability in the United States has pushed the Midwest aluminium premium higher for a fifth consecutive week, in turn exerting upward pressure on premiums across the globe.

  • US premium up 38% since the start of the year amid logistics woes, pending investigation into aluminium imports
  • Domestic premiums in Brazil post second weekly rise
  • Benchmark Rotterdam duty-unpaid premium touches fresh one-year high
  • Near-term weakness eyed in Japan market, but Q2 MJP premium expected to settle higher on soaring Midwest number

US Midwest surges as trucking reality sinks in

The US Midwest aluminium premium soared to 12.75-13.25 cents per lb on Tuesday February 6, up by 14.3% from the prior week and 38% higher than where it started the year at.
Spot P1020 is not readily available at levels below the low end of the range, suppliers said, with customers in the spot market forced to pay largely due to the impact that the lack of available trucks is having on the premium.

“Regular suppliers are checking [the spot market] out, they need to cover their...

Published

Shivani Singh

Danielle Assalve

Echo Ma

Kirk Maltais

Vivian Teo

Justin Yang

February 07, 2018

04:25 GMT

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